The euro is at the lows of the day at 1.0002 after reaching as high as 1.0187 today. It has been solidly higher until the US dollar surged across the board on high inflation data.
A fall below parity could trip fresh stops and put the September low of 0.9864 back on the table.
Recent signs of a thawing in European energy prices and a plan to shield consumers and businesses has led to a bounce in the euro but further rate hikes would endager the economy next year.
For now this is a classic flight to safety. The market pricing in anothe 25 bps of hiking doesn't really change the picture but there's a growing risk the Fed will have to tighten the US economy into recession.
Closing changes for the main bourses in Europe:
- Stoxx 600 -1.5%
- German DAX -1.5%
- UK FTSE 100 -1.1%
- Italy MIB -1.1%
- French CAC -1.3%
- Spain IBEX -1.5%
European stocks fell alongside American counterparts after the hot CPI reading. That erased what had been a decent start to the day.
